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Health Insurance Terminology

Health Insurance Terminology

in Blog by UHA Health Insurance

Navigating health insurance terminology can often seem daunting, but understanding key concepts is crucial to making informed decisions about your healthcare.

Understanding Co-payment vs. Co-insurance in Health Insurance

Two terms that frequently cause confusion are co-payment and co-insurance, both of which relate to your share of health care costs but function differently.

A co-payment is a fixed amount you pay for a specific health care service or medication. For example, you might have a $12 co-payment for a doctor’s visit or a $10 co-payment for a prescription. Co-payments are predetermined, allowing you to know exactly how much you’ll owe each time you receive care.

Co-insurance, on the other hand, is a percentage of the cost of a healthcare service that you’re responsible for paying. If your health plan has a 20% co-insurance rate, and the cost of a service is $100, you would pay $20, while your insurance covers the remaining $80.

By understanding the difference between co-payment and co-insurance, you can better manage your health care expenses and choose services that align with your financial and health needs.

Disclaimer: As a service to our readers, UHA Health Insurance provides access to our online library of content and Connecting the Dots platform. No content on this site, regardless of date, should be used as a substitute for medical advice. Always consult with your doctor or other qualified health care provider before making any changes to your individualized care plan.

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